Seagate Technology (NASDAQ:STX) Stock Gets Price Target Trim from Citigroup

Key Points

• Citigroup lowered Seagate’s price target from $1,300 to $1,050 while maintaining a “buy” rating, implying roughly 50.7% upside from the prior close.
• Analyst sentiment remains broadly positive: 22 analysts rate the stock a Buy and six a Hold, producing a consensus “Moderate Buy” rating and average price target of $971.64.
• Seagate reported strong quarterly results, with revenue rising 61% year over year to $4.23 billion and EPS of $7.68, beating estimates. However, insiders sold approximately $379.2 million of stock over the past quarter, including sizable sales by the CFO and an executive vice president.

Seagate Technology (NASDAQ:STX - Get Free Report) had its price target lowered by equities researchers at Citigroup from $1,300.00 to $1,050.00 in a report released on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the data storage provider's stock. Citigroup's target price suggests a potential upside of 50.69% from the company's previous close.

Several other brokerages also recently weighed in on STX. Evercore reaffirmed an "outperform" rating on shares of Seagate Technology in a research note on Wednesday. Wall Street Zen raised Seagate Technology from a "buy" rating to a "strong-buy" rating in a research note on Saturday, September 26th. Argus upped their price objective on Seagate Technology from $750.00 to $900.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Cantor Fitzgerald dropped their price target on shares of Seagate Technology from $1,300.00 to $1,000.00 and set an "overweight" rating on the stock in a research note on Monday. Finally, Rosenblatt Securities reduced their target price on Seagate Technology from $1,400.00 to $1,100.00 and set a "buy" rating on the stock in a report on Monday. Twenty-two investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $971.64.

Seagate Technology Stock Performance

NASDAQ STX traded up $28.97 on Wednesday, reaching $696.82. 10,083,845 shares of the stock were exchanged, compared to its average volume of 4,458,256. The company has a current ratio of 1.67, a quick ratio of 1.17 and a debt-to-equity ratio of 1.56. Seagate Technology has a one year low of $228.61 and a one year high of $1,145.00. The company's 50-day simple moving average is $809.95 and its two-hundred day simple moving average is $682.75. The firm has a market capitalization of $158.45 billion, a PE ratio of 50.20 and a beta of 2.06.

Seagate Technology (NASDAQ:STX - Get Free Report) last announced its earnings results on Tuesday, October 27th. The data storage provider reported $7.68 EPS for the quarter, topping analysts' consensus estimates of $7.45 by $0.23. The firm had revenue of $4.23 billion during the quarter, compared to analysts' expectations of $4.15 billion. Seagate Technology had a return on equity of 369.98% and a net margin of 26.11%. The company's quarterly revenue was up 61.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.61 EPS. Analysts expect that Seagate Technology will post 35.79 EPS for the current fiscal year.

Insider Activity

In other news, EVP John Morris sold 15,466 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.15, for a total transaction of $11,942,071.90. Following the completion of the transaction, the executive vice president directly owned 31,132 shares of the company's stock, valued at $24,038,573.80. This trade represents a 33.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Gianluca Romano sold 49,984 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $772.16, for a total value of $38,595,645.44. Following the completion of the sale, the chief financial officer directly owned 70,756 shares of the company's stock, valued at approximately $54,634,952.96. The trade was a 41.40% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 467,506 shares of company stock worth $379,191,992 over the last quarter. 0.51% of the stock is owned by insiders.

Institutional Trading of Seagate Technology

A number of hedge funds have recently made changes to their positions in the business. Wellington Management Group LLP raised its position in shares of Seagate Technology by 2,655.9% in the second quarter. Wellington Management Group LLP now owns 2,414,136 shares of the data storage provider's stock valued at $2,329,641,000 after purchasing an additional 2,326,538 shares during the period. National Pension Service raised its stake in Seagate Technology by 0.8% during the second quarter. National Pension Service now owns 834,705 shares of the data storage provider's stock worth $805,490,000 after acquiring an additional 6,944 shares in the last quarter. Janus Henderson Group PLC grew its position in Seagate Technology by 3,872.1% during the 1st quarter. Janus Henderson Group PLC now owns 967,528 shares of the data storage provider's stock worth $378,985,000 after acquiring an additional 943,170 shares during the last quarter. Amundi grew its holdings in Seagate Technology by 32.2% during the 1st quarter. Amundi now owns 965,565 shares of the data storage provider's stock worth $378,267,000 after acquiring an additional 235,359 shares during the last quarter. Finally, Swedbank AB boosted its holdings in Seagate Technology by 67.6% in the first quarter. Swedbank AB now owns 709,160 shares of the data storage provider's stock valued at $277,821,000 after acquiring an additional 285,949 shares during the last quarter. 92.87% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Seagate Technology

Here are the key news stories impacting Seagate Technology this week:

• Positive Sentiment: Seagate reported fiscal Q1 revenue of $4.23 billion, up 61% year over year, and non-GAAP earnings of $7.68 per share, exceeding consensus estimates of $4.15 billion and $7.45 per share. Data-center revenue rose 63%, while record cash flow and favorable pricing boosted profitability. Seagate Technology Reports Fiscal First Quarter 2027 Financial Results
• Positive Sentiment: Management projected roughly $4.8 billion in December-quarter revenue and $9.20 in non-GAAP EPS. Strong AI and cloud-storage demand, higher prices, HAMR adoption and supply commitments extending through 2028–2030 support the longer-term growth outlook. Data-center customers represented 90% of shipped capacity. Seagate Q1 Earnings Call Highlights Strong Demand and HAMR Expansion
• Positive Sentiment: Seagate raised its quarterly dividend 2.7% to $0.76 per share. However, the approximately 0.4% yield indicates that investors are valuing STX primarily as a high-growth AI-storage company rather than an income stock. Seagate Just Raised Its Dividend
• Neutral Sentiment: Analyst opinion remains divided. Wells Fargo, TD Cowen and Morgan Stanley lowered price targets but retained bullish ratings, while Wedbush maintained a $1,000 target. Summit Insights downgraded the stock to “hold,” and Susquehanna cut its target to $765 with a neutral rating.
• Negative Sentiment: The earnings beat did not clear an elevated bar after STX’s substantial rally. Investors are concerned that exabyte shipment growth and margin expansion could slow, while the stock’s premium valuation leaves less room for execution disappointments. Profit-taking after the results added to the pressure. Seagate Q1 Earnings Beat, Stock Plunges

Seagate Technology Company Profile

Seagate Technology Holdings plc NASDAQ: STX is a data storage company that develops and manufactures mass-capacity storage products and solutions. Its portfolio is centered on hard disk drives (HDDs) used in cloud data centers, enterprise systems, network-attached storage, video and imaging applications, and personal computers.

The company also provides storage-related services and solutions designed to help organizations store, manage, protect, and access large volumes of digital information.

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